Financial Data and Key Metrics Changes - Total net revenue for the second quarter was RMB 27.9 billion or approximately USD 3.9 billion, representing a 9.4% year-over-year increase [34] - Gross profit for the second quarter was RMB 18.1 billion, up 13% year-over-year, with a total gross profit margin of 64.7% [36] - Non-GAAP net income attributable to shareholders for the second quarter totaled RMB 9.5 billion or USD 1.3 billion, up 22% year-over-year [39] Business Line Data and Key Metrics Changes - Revenue from games and related VAS rose 14% year-over-year, with net revenues from online games at RMB 22.1 billion, a year-over-year increase of 15% [34][36] - Net revenue from Youdao was RMB 1.4 billion, up 7% year-over-year, driven by enhanced utilization of AI technology [35] - Net revenue from NetEase Cloud Music was RMB 2 billion, up 6% from the previous quarter but down 4% year-over-year [35] Market Data and Key Metrics Changes - The player base for the game "Mystery and Mayhem" surpassed 1 million shortly after its launch, ranking number two in the US iOS download chart [9] - "Once Human" reached number four on Steam's global top seller chart following its major content update [11] - "Fantasy Westward Journey Online" achieved a new all-time high peak in concurrent players, surpassing 2.93 million [16] Company Strategy and Development Direction - The company is focused on expanding its global reach through innovative game offerings and high-quality content updates [6][27] - There is a commitment to continuous investment in content creation and product development to maintain a healthy gaming ecosystem [38] - The company aims to leverage AI technology across its operations and game development to enhance user experiences [78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term performance of "Where Wings Meet," indicating a stable monetization cycle [45] - The company sees significant potential for Blizzard titles in the Chinese market, emphasizing the importance of aligning with local tastes [52] - Management highlighted the importance of ongoing updates and community engagement to sustain player interest in existing titles [67] Other Important Information - The company approved a dividend of USD 0.57 per ADS and repurchased approximately 22.1 million ADS for a total cost of about USD 2 billion [40] - The company is actively refining several upcoming titles, including "Sea of Venomance" and "Blood Message," with plans for release in 2026 [24][25] Q&A Session Summary Question: Monetization success of "Where Wings Meet" - Management indicated that "Where Wings Meet" has exceeded initial expectations in both active players and monetization, with a promising potential for sustainable success [44] Question: Performance of "Once Human" - Management noted that significant updates have driven a rebound in performance, with a balanced user distribution between China and international markets [47] Question: Blizzard titles performance - Management confirmed that Blizzard titles have surpassed previous metrics and see potential for attracting new players through localized improvements [52] Question: Competitive landscape for shooting games - Management acknowledged the high expectations for quality in the shooting game genre and committed to continued investment in this area [55] Question: Recovery of evergreen titles - Management reported stable improvements in "Eggy Party" and "Fantasy Westward Journey Online," attributing recovery to continuous innovation and marketing efforts [66] Question: AI integration in games - Management emphasized ongoing investments in AI technology to enhance game development and operations, with future potential for AI-designed games [78] Question: Performance of "Mystery and Mayhem" - Management shared that "Mystery and Mayhem" received positive feedback post-launch, but acknowledged long-term growth challenges [83]

Company Overview - CTW Cayman is a leading game platform company that provides global access to web-based, free-to-play games inspired by popular Japanese animations through its flagship HTML5 platform, G123.jp [3] - The company was recognized as the largest anime IP-based H5 game platform in the world in 2023 in terms of gross billings according to a Frost & Sullivan Report [3] Recent Developments - CTW is scheduled to ring the Nasdaq Stock Market Opening Bell on August 18, 2025, marking a significant moment for the company following its public listing earlier in the month [1][2] - Ryuichi Sasaki, the Founder, CEO, and Chairman of CTW, emphasized the importance of this event for the company and its investors, highlighting the growth potential in the global gaming market [2] Business Model and Strategy - CTW focuses on providing a comprehensive platform that enables game developers to generate revenue from Japanese anime IP by reaching a global player audience [3] - The company shares revenue from players' in-game purchases with game developers and offers premium IP content, distribution, and marketing services [3]

Financial Performance - Net revenue for Q2 2025 reached 27.9 billion yuan, representing a year-on-year growth of 9.4% [1] - Net profit attributable to shareholders under non-GAAP was 9.5 billion yuan, showing a year-on-year increase of 21.8% [1] Gaming Segment - The gaming sector remains the core business for the company, with net revenue from games and related value-added services amounting to 22.8 billion yuan in Q2 [1] - The game "Yan Yun Shi Liu Sheng" has seen sustained popularity, with over 40 million cumulative users by the end of July [1] - The classic IP "Dream of the Red Chamber" achieved a new high in simultaneous online users, while mobile game revenue also reached a new record [1] Other Business Segments - NetEase Youdao reported Q2 net revenue of 1.4 billion yuan, achieving sustainable profitability for the fourth consecutive quarter under its "AI-native" strategy [1] - NetEase Cloud Music's Q2 net revenue was 2 billion yuan, remaining stable year-on-year [1] - Net revenue from NetEase Yanxuan increased quarter-on-quarter, contributing 1.7 billion yuan in Q2 [1] North American Market Expansion - Several new games from NetEase have successfully penetrated the North American market, with "Out of Bounds" ranking second on the PlayStation May free download chart in North America [2] - "All-Star Streetball Party" and "Marvel's Secret War" topped the iOS download charts in multiple regions after their overseas releases, both entering the top 2 in the US download rankings [2] - "Seven Days World" 2.0 version reached fourth place on the Steam global bestseller list, while "Marvel Showdown" secured first and second places on the Steam US and global bestseller lists, respectively [2]

Group 1 - Microsoft has seen a stock surge of 25% this year, driven by its strong position in office software and expansion into new industries like gaming [1] - The company is heavily investing in artificial intelligence (AI), enhancing its products with AI Copilot and introducing AI-capable personal computers, presenting significant growth opportunities [2] - Microsoft achieved an 18% revenue growth in its most recent quarter, but to maintain investor interest, it needs to demonstrate that its AI strategy, particularly Copilot, can be a substantial growth catalyst [3][5] Group 2 - Despite the bullish outlook on Copilot, there are criticisms from competitors like Salesforce, which suggest that Microsoft may be repackaging existing technologies rather than innovating [4] - The stock is currently trading at a high price-to-earnings multiple of just under 39, indicating that investors have high expectations for future growth [5][9] - Concerns exist regarding potential economic slowdowns affecting AI spending and demand for AI products, making the next quarter a critical period for Microsoft to prove its growth sustainability [7] Group 3 - While Microsoft is recognized as a quality long-term investment due to its diversification and opportunities, there are doubts about its current innovation capabilities compared to competitors [8] - The stock's high valuation raises concerns about a potential correction if growth expectations are not met, suggesting that it may be prudent to monitor the stock rather than buy at its current price [9]

Gaming’s wider benefits are starting to be recognised in the country. In the right hands, consoles can encourage learning, not laziness https://t.co/YSR8cMBvvw ...

Core Insights - NetEase reported a net revenue of 27.9 billion yuan for Q2 2025, indicating strong financial performance [1] - The net profit attributable to shareholders under non-GAAP was 9.5 billion yuan, showcasing profitability [1] - Research and development (R&D) investment reached 4.4 billion yuan, with an R&D intensity of 15.6%, reflecting a commitment to innovation [1] - Several new gaming products from NetEase have successfully penetrated the North American market during the second quarter [1]

Core Viewpoint - NetEase reported strong financial results for Q2 2025, with a net revenue of 27.9 billion yuan and a non-GAAP net profit of 9.5 billion yuan, driven by a focus on high-quality and diverse product offerings [1][3] Financial Performance - Q2 net revenue reached 27.9 billion yuan, with a non-GAAP net profit of 9.5 billion yuan [1] - R&D investment amounted to 4.4 billion yuan, representing an R&D intensity of 15.6% [1][3] - Net revenue from games and related services was 22.8 billion yuan [5] - NetEase Youdao achieved a Q2 net revenue of 1.4 billion yuan, marking its fourth consecutive quarter of sustainable profitability [5] - NetEase Cloud Music reported a Q2 net revenue of 2 billion yuan, with increased user engagement [5] - Other innovative and miscellaneous business revenues reached 1.7 billion yuan in Q2 [5] Product Development and Strategy - The company is expanding its global product lineup with several anticipated new games, including the original RPG "Forgotten Sea" and the narrative-driven action-adventure game "Return to Tang" [3] - NetEase's partnership with Blizzard has yielded strong performance for titles like "Hearthstone," which recently launched a new expansion and reached the fifth position on China's iOS bestseller list [3] - The return of "Diablo III" to the Chinese market exceeded expectations, and the upcoming release of "Diablo II" Remastered is set for August 27 [3] - NetEase's R&D investment positions it among the industry leaders, focusing on technology-driven product innovation across various sectors [3][4] AI and Technological Advancements - NetEase Lingdong launched the world's first engineering machinery embodied intelligence model "Lingjue," showcasing its capabilities at the World Artificial Intelligence Conference [4] - The model achieved 80% efficiency compared to human operators in harsh environments and aims for unmanned operations in over 30 mines by 2027 [4] - NetEase Youdao is enhancing its core business competitiveness through AI, achieving a user retention rate of over 75% and a 30% year-on-year increase in AI subscription service revenue [4]

Group 1: Strategic Collaboration - Bango, Telkomsel, and Nuon Digital Indonesia announced a strategic collaboration to offer Microsoft PC Game Pass through IndiHome Add-On in Indonesia [1][3] - The partnership utilizes Bango's Digital Vending Machine® (DVM™) for fast and secure activation, along with promotions and discounts for customers [1][4] Group 2: Product Offering - Microsoft PC Game Pass provides unlimited access to hundreds of high-quality PC titles for a fixed monthly subscription fee of IDR 63,063 (excluding VAT) [2][5] - The service includes day-one releases from major studios and exclusive bonuses from Riot Games, enhancing the gaming experience for users [2][3] Group 3: Market Trends and Benefits - The collaboration addresses the growing trend of cross-platform gaming and subscription services, allowing gamers to enjoy premium experiences affordably [3] - By integrating PC Game Pass into IndiHome Add-On, Telkomsel aims to drive customer acquisition and retention while providing added value to Indonesian gamers [4][5] Group 4: Promotional Offers - A promotional offer for the first 500 users includes a free first month of PC Game Pass starting August 14, 2025 [6][8] - Subscribers will receive an activation code to start playing after completing the transaction [6]

Online Gaming Strategy - Bloomberry is ramping up online gaming operations [1] - This strategic move is happening "amid losses" [1] Key Player - Enrique Razon, a Philippine billionaire, is leading Bloomberry [1]

Core Insights - Tencent's Q2 2025 earnings report shows strong performance in the gaming sector, with total revenue reaching 592 billion yuan, driven by international market growth [1][2] - The international gaming revenue reached 188 billion yuan, marking a 35% year-on-year increase, the highest growth rate since separate disclosure began [1][3] - Tencent's CEO, Ma Huateng, highlighted the success of established games like "Honor of Kings" and "Peacekeeper Elite," as well as new titles like "Delta Force," contributing to user and revenue growth [1][4] Gaming Performance - The international market's gaming revenue growth is attributed to successful titles such as Supercell's games and "PUBG MOBILE," with overall sales from self-developed games in overseas markets increasing by 11.07% to 9.501 billion USD in the first half of the year [1][2] - "Clash Royale" has emerged as a new growth engine for Tencent in international markets, achieving a near seven-year high in daily active users through content updates and community events [2][3] - The shooting game genre is experiencing growth, with its share in the top 100 mobile games rising from 13.89% in 2024 to 17.03% in the first half of this year, with Tencent leading in this category [3][4] New Game Launches - "Delta Force" has surpassed 20 million daily active users, ranking among the top five in China, and is set to launch on PS and Xbox platforms, potentially increasing its user base further [3][4] - The mobile version of "Valorant," titled "Valorant: Source Energy," is scheduled for release on August 19, with over 60 million pre-registrations, indicating strong market interest [4][5] - "Dungeon & Fighter: Innovation Century" has seen a resurgence in popularity, ranking fifth on the gaming charts after a major update, while its mobile counterpart has also returned to the top of the sales charts [5]